How important is the manager in private equity real estate funds? Empirical evidence on fund returns from the European markets: 23rd Annual European Real Estate Society Conference

Maiia Sleptcova, Heidi Falkenbach

Research output: Contribution to conferencePaperScientific

Abstract

The managers are in a key role in a private equity real estate fund, and it has been suggested that the manager’s abilities or characteristics might be the factor explaining the large variation between the returns of the funds. In this paper, we extend the literature on manager’s role on private equity real estate fund returns in two ways using fund-level cash flow data on European private equity real estate funds. First, we analyse the effects of the manager characteristics on fund returns. Second, we analyze performance persistence, where earlier research on both non-real estate and real estate private equity funds suggests that the returns of the current fund are positively correlated to the returns of the past fund as well as to fund size and growth, whereas fund returns are negatively correlated to the sequence number of the fund indicating that emerging managers deliver superior returns over seasoned managers. Late findings in the non-real estate private equity area, however, suggest that the persistence only prevails in pre-2000 data for non-real estate private equity, indicating that the phenomenon might have been due to the lack of maturity in the sector.

Original languageEnglish
Publication statusPublished - 2016
EventEuropean Real Estate Society's Annual Conference - Regensburg, Germany
Duration: 8 Jun 201611 Jun 2016
Conference number: 23

Conference

ConferenceEuropean Real Estate Society's Annual Conference
Abbreviated titleERES
CountryGermany
CityRegensburg
Period08/06/201611/06/2016

Keywords

  • Non-Listed Real Estate Funds
  • Performance persistence
  • Private Equity Real Estate

Fingerprint Dive into the research topics of 'How important is the manager in private equity real estate funds? Empirical evidence on fund returns from the European markets: 23rd Annual European Real Estate Society Conference'. Together they form a unique fingerprint.

Cite this